High Energy Prices? Help Is on the Way!

As we have discussed in our various paid services, the CFTC is poised to slap new limits on energy speculation and, in time, on other commodities as well (food is a near certainty and metals a distinct possibility).

This is really just nonsense and little more than an attempt to show that the government is “doing something” about last year’s spike in energy prices. The give-and-take, rough-and-tumble commodities exchanges here in the U.S. have worked well for over 100 years now and need an even heavier hand of the government on their shoulders like any of us need more taxes.

It’s also nonsense – while the U.S. government likes to think the sun rises and sets at America’s will, there are now very robust commodities exchanges established in other countries. Traders who find their activities limited here will simply move their business there.

Which makes one wonder how the U.S. regulators will react when more of the oil trading moves to offshore commodities exchanges? Ban U.S. citizens and corporations from speculating on foreign exchanges? Or slap some sort of special tax levy on foreign-derived commodities earnings? Nothing would surprise me at this point.

Hey, maybe we can start a viral campaign to close the CFTC? Then we could roll up our sleeves and get to work on most of the other useless bureaucracies now bedeviling this formerly great country of ours.